BOARD MEETING DATE: February 1, 2008
AGENDA NO. 9

PROPOSAL:

Award Funding from MSRC for CNG Alternative-Fuel School Buses to Private School Bus Transportation Providers

SYNOPSIS:

On September 8, 2006, the Board approved an MSRC allocation of $2 million for CNG school bus incentives to private school bus transportation service providers. On January 18, 2007, the MSRC approved an additional $2 million, which was approved by the Board on February 2, 2007. The AQMD administers this program to facilitate the implementation of Rule 1195 – Clean On-Road School Buses. Awards from this allocation are made on a first-come, first-served basis and individual awards are brought before the Board for approval. To date, three awards have been issued to private school bus transportation providers. This action is to approve an award to Student Transportation of America, Yucaipa Bus Services and First Student, Inc., all private school bus transportation service providers, in an amount not to exceed $480,000 to purchase five CNG and three propane school buses.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, January 17, 2008, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to:

1) Execute an agreement with Student Transportation of America in an amount not to not to exceed $180,000 from MSRC Fund 23 for the cost differential to purchase three (3) CNG school buses to be used in the South Coast Basin;

2) Execute an agreement with Yucaipa Bus Services in an amount not to exceed $120,000 from MSRC Fund 23 for the cost differential to purchase two (2) CNG school buses to be used in the South Coast Basin; and

3) Execute an agreement with First Student, Inc., in an amount not to exceed $180,000 from MSRC Fund 23 for the cost differential to purchase three (3) propane school buses to be used in the South Coast Basin.

 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its August 17, 2006 meeting, the MSRC approved funding under the FY 2006-07 Work Program for CNG and propane alternative-fueled school bus incentives to private school bus transportation service providers. Specifically, the MSRC approved an allocation of $2 million for CNG school bus incentives for private school bus transportation service providers. Subsequently, the Board approved this action at its September 8, 2006 meeting. In addition, the MSRC requested that the program be administered by AQMD staff in its efforts to achieve compliance with Rule 1195. On January 18, 2007, the MSRC approved an additional allocation of $2 million for this work program category which was approved by the Board on February 2, 2007.

Following approval by the MSRC at its January 5, 2007 meeting, the Board approved funding in the amount of $1,137,580 for a private school bus transportation provider to purchase 23 CNG school buses. On June 1, 2007, this award was amended as the private school bus transportation provider only needed ten CNG school buses to satisfy its contractual obligations. The amount of the award was reduced to $600,000 and the remaining balance of $537,580 was reverted to the MSRC Discretionary Fund for future allocation to other programs. Following approval by the MSRC on March 2, 2007, the Board approved a second funding award in the amount of $1,875,049 to purchase up to 42 CNG school buses to a private school bus transportation provider. This school bus transportation provider later declined this funding award. Following approval by the MSRC on July 13, 2007, the Board approved a third funding award to a private school bus transportation provider in the amount of $60,000 to purchase one CNG school bus. On August 23, 2007, action was taken by the MSRC to reallocate $265,000 to another work program. Currently, a remaining balance of $2,537,420 is available on a first-come, first-served basis.

Proposal

This action is to approve an award to Student Transportation of America for three CNG school buses, Yucaipa Bus Services for two CNG school buses, and First Student, Inc. for three propane school buses, approved by the MSRC on January 17, 2008, in furtherance of AQMD efforts to implement Rule 1195 and prevent the issuance of waivers to allow the purchase of non-compliant buses. The award in an amount not to exceed $60,000 for each school bus for a total amount not to exceed $480,000, would be from the MSRC CNG and alternative fuel school bus incentives program under the MSRC FY 2006-07 Work Program.

Benefits to AQMD

This project will reduce exhaust emissions from higher emitting diesel school buses and exposure of school children and others to toxic diesel particulate matter in or near diesel-powered school buses. In addition, this project will further facilitate the implementation of Rule 1195.

Resource Impacts

The total amount of MSRC funding for Student Transportation of America, Yucaipa Bus Services and First Student, Inc., shall not exceed a total of $480,000. Subsequent to Board approval of funding award, a remaining balance of $2,057,420 would be available to other private school bus transportation service providers on a first-come, first-served basis.